News from the New York State and Local Retirement System

What Unused Sick Leave Might Mean For You at Retirement

If you’ve accumulated unused, unpaid sick leave, you may be able to use it toward your NYSLRS pension benefit.

New York State employees are eligible for this benefit. You also may be eligible if your employer has adopted Section 41(j) for the Employees’ Retirement System (ERS), or 341(j) for the Police and Fire Retirement System (PFRS), of Retirement and Social Security Law. Not sure? Ask your employer or check your Member Annual Statement.

Here’s How It Works

Your additional service credit is determined by dividing your total unused, unpaid sick leave days by 260. Most ERS members can get credit for up to 165 days (7½ months) of unused sick leave. The benefit is capped at 100 days (4½ months) for most Tier 6 members. State employees in certain negotiating units may be able to use 200 days (about nine months). Those extra “months” would be used in calculating your retirement benefit.

Also, depending on your employer, your unused sick leave may be used to cover some health insurance costs during your retirement. Please check with your employer for information about health insurance.

Restrictions

Unused sick leave cannot be used to reach NYSLRS retirement milestones. Let’s say you have 19½ years of service credit. At 20 years, your pension calculation would improve substantially. You also have 130 days of unused sick leave. Can you add the six months of sick leave credit to get you to 20 years? No. Retirement law does not permit it. You’ll have to work those extra six months to get the 20-year benefit rate, though sick leave credits can still be used in your final pension calculation.

Your additional service credit is determined by dividing your unused sick leave days by 260.

To get account-specific information, you can email our customer service representatives using our secure email form, and one of them will review your account to address your questions. Filling out the secure form allows us to safely contact you about your personal account information. Please allow five to seven business days for a response.

Is there a maximum dollar amount that can be used for sick leave credit? I heard there is a limit of $80,000. is this true? so if my daily pay rate is $500 x 165 sick days = $82,500 i would be over the $80,000 limit

The NYSLRS sick leave credit benefit converts unused, unpaid sick leave into service credit, so the limit is a number of days (up to 165 days—7½ months—for most ERS members), not a dollar amount.

Some employees have a benefit that allows them to convert unused sick leave into a health insurance credit, however NYSLRS doesn’t administer health insurance benefits. If this is the benefit you’re asking about, you should check with your employer about any limits.

If you have questions about a NYSLRS benefit, we recommend emailing our customer service representatives using our secure email form. One of our representatives will review your account and respond to your questions. Filling out the secure form allows us to safely contact you about your personal account information.